Experts suggest ways to develop private economy

The event was jointly held by the Vietnam Chamber of Commerce and Industry (VCCI), the Ministry of Planning and Investment, and the World Bank (WB). 

Sandeep Mahajan, WB Chief Economist in Vietnam, underlined the declining productivity growth as the biggest challenge to the local economy due to shortcomings in production and use of natural resources of State-run businesses. 

The productivity of the non-State sector is also decreasing, he said, adding that it will be difficult for Vietnam to achieve a gross domestic product (GDP) growth of 7 percent in the future. 

Experts said the main culprit lies in policy limitations. 

Tran Thi Lan Huong, a WB expert, recommended the State quickly improve the business environment to enhance the private sector’s competitive capacity and productivity, overhaul State-owned enterprises, restructuring agriculture and make full use of free trade agreements. 

Additionally, Vietnam should pay more attention to environmental protection and climate change adaptation to secure sustainable development, she noted. 

As a southern economic hub, Ho Chi Minh City is focusing on developing its private economy and bettering administrative procedures. 

Vice Chairman of the municipal People’s Committee Le Thanh Liem said the workshop offers an opportunity for managers and businesses to seek development measures in the field. He noted that the private economic sector contributes nearly 60 percent to the city’s GDP. 

Though the number of private businesses in the city is growing strongly, typically they are of a small-scale with low productivity, he said, adding that the city will create the best working environment for both domestic and foreign enterprises. 

The city plans to develop e-government, improve social welfares, and promote international cooperation, he said.